After the EU states cleared the way for additional tariffs on Chinese electric cars, Beijing is tightening the thumbscrews. Manufacturers of brandy are initially affected.
In the wake of the trade conflict with the EU over the import of electric cars, China has imposed temporary measures on European brandy. As the Chinese Ministry of Commerce announced, importers of relevant types of brandy will have to deposit a deposit of 30.6 to 39 percent of the value of the goods with Chinese customs from this Friday.
The move represents a U-turn after Beijing decided at the end of August not to take any measures initially, even though, according to Chinese statements, price dumping was being carried out on the brandy under investigation.
Reaction to the vote of the EU states
The announcement is likely to be a reaction to the decision of the EU states, which cleared the way for tariffs on electric cars from China with a vote last week. This means that the EU Commission can decide to introduce taxes of up to 35.3 percent.
Beijing accuses Brussels of protectionism with regard to the e-car tariffs. The EU ignores facts and disregards the rules of the World Trade Organization. Nevertheless, China repeatedly emphasized that it would strive for a negotiated solution.
Meanwhile, further investigations into EU products are ongoing in China. In July, the Chinese Ministry of Commerce announced that it was investigating imported pork from the EU. There is also an ongoing anti-subsidy investigation into some imported dairy products.
Already in August, the Ministry of Trade invited experts as well as industry associations and industry representatives to obtain opinions and suggestions on increasing tariffs on imported combustion cars with large engines.
EU Economic Commissioner Paolo Gentiloni is not afraid of further measures from Beijing, he said. “We have carried out a serious study into the risks of overproduction in some sectors,” said the Italian at a meeting of EU finance ministers in Luxembourg. “We made appropriate and very proportionate decisions and I don’t think there is any reason to respond to that proportionate decision with retaliation.”
Source: Stern
